Binance has partnered with the KYC provider known as Liquid to reenter the Japanese market.
Liquid offers a facial authentication tool for KYC purposes. It uses an AI-based image processing capability. It enables identity verifications that comply with the local Japanese KYC regulations.
Biometric data gathering plays a key role in KYC procedures. However, it has been under the radar of the main regulators due to privacy concerns.
Some projects, like Worldcoin, have been strongly criticized by different regulators worldwide regarding gathering biometric data.
Takeshi Chino, general manager for Binance Japan, reassures that Binance took all the necessary safety measures.
“Binance’s robust KYC framework plays a critical role in protecting the platform, users and community, and the entire ecosystem from potential threats.”
Takeshi Chino, general manager for Binance Japan
Binance in Japan
Japan has strong regulations regarding compliance and KYC procedures in the country. Local regulators state that cryptocurrency exchanges must use KYC procedures. This entails conducting background checks on its customers.
In November 2022, Binance entered the Japanese market by acquiring a licensed local crypto exchange, SAKURA Exchange BitCoin, Inc. (SEBC).
This acquisition led to SEBC’s rebranding as Binance Japan Inc., focusing on building a fully compliant Web3 ecosystem in Japan. With its full launch scheduled for August, Binance Japan plans to list 34 tokens and introduce a range of services, including spot trading, Earn products, and an NFT marketplace.
The move is significant as other major exchanges like Coinbase and Kraken have recently paused their operations in Japan.